microsoft has announced a “multi-year, multi-billion dollar” deal with a California-based AI startup, OpenAI. The latter is behind the AI systems that “create” art and text. Among them, we can mention ChatGPT, DALL-E 2, and GPT-3.
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“We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,” said Satya Nadella. “In this next phase of our partnership, developers and organizations across industries will have access to the best AI infrastructure, models, and toolchain with Azure to build and run their applications.”
OpenAI CEO Sam Altman welcomed the deal with the tech giant. He said that the two parties have the same values. So this is a good chance to continue “research and work toward creating advanced AI” that should be useful for many people.
None of the parties talked about the deal details. But much earlier, we heard that the cost of the deal reached $10 billion.
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If the rumors are true, Microsoft will receive 75% of the profits of OpenAI until it brings the invested funds back. After that, the tech giant will receive a 49% stake in the startup.
This is Microsoft's third investment in OpenAI. In 2019, the software giant gave another $1 billion to AI devs. Two years later, the Bill Gates firm held a second round of funding.
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In 2020, Microsoft received a license to include the GPT-3 language model in its own techs and apps. At the same time, the startup was able to use the computing power of the Redmond-based firm.
OpenAI products are at the core of the tech giant's tools, such as the GitHub Copilot AI that helps devs in coding and the Azure OpenAI. Microsoft also plans to use ChatGPT in a number of its services, like Office and Bing. The chatbot is able to respond to requests in a human manner and maintain a dialogue.
All these made the MS shares rise in price by 1.8%.